Sands Capital Management, LLC - International Growth on Siemens Energy
Thesis
Siemens Energy was purchased for exposure to gas turbines and grid equipment as power becomes a bottleneck for AI infrastructure. Sands expects U.S. power capacity to remain constrained for the rest of the decade and likely beyond, pushing data centers toward onsite generation. The turbine market is concentrated, and Sands expects leading manufacturers to manage supply and pricing carefully as AI-related backlogs convert to revenue. Additional upside can come from U.S. high-voltage direct-current projects, higher-margin gas aftermarket activity, and restructuring of the wind business.
“As AI-related orders convert from backlog to revenue, we see potential for meaningful margin expansion.”